Below Is a Table for the Present Value of $1

question 58

Multiple Choice

Below is a table for the present value of $1 at compound interest. Below is a table for the present value of an annuity of $1 at compound interest.
Using the tables above, what would be the present value of $15,000 (rounded to the nearest dollar) to be received at the end of each of the next two years, assuming an earnings rate of 6%?

• A) $27,495
• B) $26,040
• C) $30,000
• D) $25,350

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Definitions:

Amortization Table

A table that outlines each periodic payment on a loan over time, breaking down the amounts that go towards the principal and interest.

Semiannual Payment

A payment made twice a year, often related to loans, insurance premiums, or investments.

Collateral Bonds

Bonds that are secured by a specific asset or form of collateral, offering more security to bondholders.